Depreciation for Advance Tax


Vipul Acharya (Account Officer)     09 December 2019

Vipul Acharya
Account Officer 
 9 likes  352 points

| My Other Post

Dear Sir,

For computation of advance tax, whether depreciation under companies act or income tax to be taken

avater

BE YOURSELF BELIVE YOURSELF   09 December 2019

BE YOURSELF BELIVE YOURSELF

 20 points

View Profile | My Other Post

Income tax depreciation to be taken......bcz advance tax is also like income tax but which is paid in advance.......hence as we normally take the depreciation as the income tax then it should be taken.

avater

Kapadia Pravin   09 December 2019

Kapadia Pravin

 823 likes  12942 points

View Profile | My Other Post

Advance tax is computed based on estimated business and other income. So profit is estimated and taxable profit is subject to Advance Tax. So it's after depreciation.

Vipul Acharya (Account Officer)     09 December 2019

Vipul Acharya
Account Officer 
 9 likes  352 points

View Profile | My Other Post

As per IT act or Co act plz clarify

avater

Kapadia Pravin   10 December 2019

Kapadia Pravin

 823 likes  12942 points

View Profile | My Other Post

Vipul, it is similar to actual tax computation.
The difference is only that it is estimated figures.

Depreciation of course it is as per Income Tax Act .

avater

sabyasachi mukherjee   10 December 2019

sabyasachi mukherjee

 88 likes  2215 points

View Profile | My Other Post

@ vipul
there are two aspects
1. while computing profit loss from business .
depreciation is computed as per rates mentioned in Schedule of companies act 2013.
2. estimation is done both as per companies act and income tax.
the profits computed therein will be subject to deduction allowable under the heads of profits and gains of business and professions .
accordingly advance tax is computed and deposited.

I hope all your doubts are cleared.

avater

Kapadia Pravin   10 December 2019

Kapadia Pravin

 823 likes  12942 points

View Profile | My Other Post

Vipul
In addition to my above reply, whatever estimated tax liability comes , please reduce TDS credit , TCS credit and balance after that will be your advance tax liability.

You have to pay advance tax in 4 instalments during FY

avater

sabyasachi mukherjee   10 December 2019

sabyasachi mukherjee

 88 likes  2215 points

View Profile | My Other Post

Tds credits will be adjusted when the last installment are paid.

avater

Kapadia Pravin   10 December 2019

Kapadia Pravin

 823 likes  12942 points

View Profile | My Other Post

Above post

Means what ??? 😇😇😇

avater

sabyasachi mukherjee   10 December 2019

sabyasachi mukherjee

 88 likes  2215 points

View Profile | My Other Post

Send me the details .......


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »